Travis Holoway, the CEO and cofounder of SoLo Funds, says his startup isn’t just a quick way to take out a small, short-term loan. It’s the start of something bigger.
The startup, which raised $10 million in a Series A funding round last week, offers an app in which users can loan money to one another. Borrowers usually grant a small “tip” to their lenders when paying the money back, and in turn build up a “SoLo Score” that helps them take out larger loans in the future.
While Holoway says SoLo’s immediate purpose is to provide quick access to emergency capital, he adds that the startup’s true goal is to create a virtuous cycle, in which borrowers work their way up the financial ladder and become lenders on the platform. Along the way, he hopes to introduce those users to new banking and investment opportunities that they otherwise might have missed.
“If we can have individuals come here, take loans when they need them, pay them back on time, get access to more…